GE Aerospace Elevates 2028 Financial Targets Amid Engine Market Dominance

GE Aerospace (NYSE: GE) has updated its strategic outlook for 2028, significantly raising its targets for revenue growth, operating profit, and free cash flow. The revised projections indicate a stronger growth trajectory than previously communicated during the company's 2024 investor day. The company's growth is anchored by its leadership in the narrowbody aircraft engine market, specifically through its joint venture with Safran, CFM International. The LEAP engine serves as the exclusive power plant for the Boeing 737 MAX and a primary option for the Airbus A320neo, ensuring a steady stream of high-margin maintenance and overhaul services. Financial targets for 2028 have been adjusted upward across key metrics. Adjusted operating profit is now expected to reach $11.5 billion, up from the previous $10 billion estimate. Free cash flow (FCF) targets have been lifted from $7 billion to $8.5 billion, while revenue growth expectations have shifted from high single-digits to double-digit compound annual growth. Investors are focusing on the long-term service cycle, as aircraft engines can remain in service for up to 40 years. With approximately 40% of the legacy CFM56 fleet yet to undergo its first major shop visit, GE expects a 70% increase in narrowbody profits by 2028. This recurring revenue model from 'shop visits' provides a predictable, high-margin cushion that supports the company's valuation.